Breakingviews: Lufthansa’s new CEO starts with a crash

Wednesday, June 11, 2014 - 04:00

June 11 - Lufthansa's new CEO has shocked investors by admitting the carrier will miss its 2014 profit targets. Even with heavy cost cutting, regaining credibility will be a long-haul flight, says Breakingviews

▲ Hide Transcript

▶ View Transcript

So it doesn't have good enough times that we said we heard this morning the yet parents can miss it sort of fourteen. Profit targets the stock is down about 14%. On the back to back that news comes from a I'm the CEO who's been in the -- the six -- strike -- -- -- optional practice that has been covering this for breaking news. -- -- you're -- the cold this morning with enough times that how how convincing does does does the company's sound now going forward. Yeah I I don't fight too convincing them pointing to long that font bookings over the fumble. What do they don't target has been coming to fifty from Chung -- from only. Several weeks ago so unless the conservative collapsed. Tearing and in in recent weeks. This can't be the only explanations. I am I mean they say a tough competition. Particularly from both carrots. Today today today they also say a while they they they said tough competition generally from the gulf. And strikes. Out of the reasons for this. What what else is that. Well I mean to strike. I think it's introduced kind of surprising because. They always sat through that destroys it costs him what seventy million year olds. But this but they lower the profits for crossbar 300 too far from it. There you million euros for the food -- year for this year so this is your -- -- only a tiny bit off the whole thing and yeah additionally on -- What I think they were just too ambitious. Before hand and -- your -- since more changes are enough to to -- to all the whole. Our current garden and I mean pitched through the total of fourteen -- on the worst casualty. The mall. Important thing is it that big 2015. Targets were in terms of cost cutting would -- if they are running. If you're running a large cost cutting program which kicked off summer years ago. And at this -- -- -- off to pull off on pitching to an operating profit of two parts experience. It was on fifteen and they know say they will only it gave it to chief two billion in next year which is there. Decreased by attorney 5%. And even this is contingent on further cross country so. It was it was Wisconsin's former school this morning and articles on these issues. Yes I guess what it would look what the what -- rudeness of the cool like this mean for the image of the six weeks has been set he came. US enemies before we came on lap from the from the passengers. He's been an effect on the wrong times that he's got a excuses really bombing. You over the head off the path and don't -- tunnels passions are division which is far far from launchers. Division and the division which were at the moment. Makes most of the problem or it's kind of move that was most of Forbes do. Full hopeful for profit warning so he can't really blame it on its traditions where he. -- -- -- -- No I don't think so I mean. For the time being I mean he still has I mean he has just been. Chosen and he where if you're cut -- has been. Client. Group credible and -- and it has been good at communicating with market I think this has been picked on them. But it cannot -- -- there are enough can. Moment for him at the moment. OK we will see or left many things that -- left shortly you can read that piece and indeed down. That's several other pieces on the -- a buyer or laugh on the breaking news web sites. You're what you -- -- -- and 1730 PST IMAX Acropolis sources.

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV. Learn more about Thomson Reuters products: